Rede D'Or São Luiz (RDOR3) Q2 2025 earnings summary

Executive summary

• Revenue grew 11.5% year-over-year in Q2 2025, reaching BRL 15.1 billion, with net income surpassing BRL 1.1 billion, up 12.9% year-over-year, and adjusted net income at BRL 1.2 billion, excluding SulAmérica amortization.

• Operational beds increased by 556 in the semester, totaling over 10,413, with 265 new beds opened in Q2 and total beds reaching 13,083, supporting organic and inorganic expansion.

• Strong cash generation and operational cash flow of BRL 4.6 billion in 6M25, improved working capital, and reduced leverage position the company for future growth.

• Artificial intelligence initiatives and digital transformation are underway to drive administrative and operational efficiency, especially in fraud detection and productivity.

• SulAmérica integration contributed to consolidated results, with separate managerial indicators disclosed for transparency.

Financial highlights

• Gross revenue for hospital services in Q2 2025 was BRL 8.882 billion, up 13.8% year-over-year; average ticket increased 9.1% over the last twelve months.

• Oncology segment gross revenue reached BRL 940 million, up 17.7% year-over-year, with average ticket up 12.5%.

• Consolidated EBITDA for Q2 2025 was BRL 2.5 billion, up 18.4% year-over-year, with a margin of 25.9%.

• Adjusted net income for Q2 2025 was BRL 1.2 billion, excluding amortization from business combinations.

• Operational cash flow grew 22.4% year-over-year to BRL 4.6 billion in the quarter.

Outlook and guidance

• Ongoing ramp-up of nine hospitals and over 30 organic expansion projects are expected to deliver 3,203 new beds by 2028, contributing to gross margin improvement.

• Management remains cautious on long-term projections but maintains a positive growth ambition for SulAmérica and hospital operations.

• ESG targets include a 30% recyclable waste rate and a 36% reduction in GHG emissions intensity by 2030.